The Review of Asset Pricing Studies Vol. 13 No. 3 2023
The Other Insiders: Personal Trading by Brokers, Analysts, and Fund Managers
Abstract
When brokers, analysts, and fund managers buy or sell stocks for their own accounts, these “access employees” of financial institutions outperform retail investors over short windows up to a month. They earn particularly high abnormal returns when they trade before earnings announcements, revisions of analyst recommendations, and large stock price changes. We also find evidence consistent with profitable front-running and information leakage around the execution of corporate insider trades and block trades by mutual funds, as well as the release of revised recommendations by analysts who work at the same brokerage firm.
- DOI
- 10.1093/rapstu/raad002
- Volume
- 13
- Issue
- 3
- Pages
- 481-522
- Language
- en
- Sources
- openalex bibtex:phds-export.bib crossref